Travelling the world can be quite an adventure. The excitement, the adrenaline and the ability to explore the unknown can be addictive; and expensive. Australians spent over AU$15,000 in 2016 on travelling and since then have continued to rise in the ranks to become one of the countries that spend the most on travel each year. However, simple travel oversights often made by travellers can end up making the experience very stressful and costly. For those who find themselves frequently hopping on planes and seeing their bank balances dwindle due to flights, take a look at a few nifty ways you can better manage your money and still satisfy that travel bug.
Get A Credit Card
Travel credit cards are worth looking into. Many credit card companies offer promotions for use of their services. These offers can include cashback and frequent flyer points for hotels, airlines and even air travel benefits such travel credit to be used in stores. Utilise these and your wallet will thank you. You will end up spending less on your flights (if financed using air points) or even getting your accommodation for free on a trip.
Another great credit card tip for travellers is to use their cards to book their travels and then use their cash to pay the credit card bill. This way you accrue points and benefits from your credit provider and also keep your credit standing in good shape. Keep in mind you should only pursue this if you do have the cash to largely finance the trip soon after the purchase. Travel can be expensive and if you cannot repay the amount on your card, it will end up negatively affecting your credit score. Experts such as Experian recommend keeping your credit card utilisation below 30 percent.
Have A Dedicated Travel Account- And Budget To Go With It
Budgeting is the cornerstone of many great financial habits in our lives. It is used to get a hold of our debts, achieve our saving goals and now, to keep an eye on your travel spend. The Westpac Global Travel Study revealed that 80 percent of Australians overspend when travelling overseas. Australian families are taking note with eight in ten families now letting their budget determine their upcoming travel plans rather than dreams. A travel budget is simple to make and important in so many ways. It allows you to keep up with your spending habits and more importantly, identify areas where you can be more money savvy. Keeping track of your finances is the first step to reducing unnecessary spending. This can mean more money freed up for your adventures. Many banks now offer a variety of products to smartly manage your everyday finances aimed at travellers, savers or for general use.
Pick An Airline
Many pieces advise travellers to shop around and compare prices before booking their flights. However, did you ever consider the perks that may come with sticking to one airline? Many carriers tend to reward customer loyalty; something you can use in your favour to save a lot of money. As you repeatedly book with them, you can accrue flyer and loyalty points. Flight upgrades and extra amenities can all come free or heavily discounted for repeat customers. Coupled with credit card points, you could find yourself flying for free, or close to it.
Whether it is for work or to explore the globe, travelling can certainly burn a hole in our bank accounts. However, that does not have to be the case. There are many tips to achieve budget-friendly travel and still enjoy the beauty that the world offers. Whether it is by implementing a travel budget or making smart use of extra perks that come with credit facilities, you can achieve the perfect balance between your finances and your travel ambitions.